I trying to get MS-SQL reporting services set up with MOSS 2007 and have come up against a problem I can't seem to figure out.

Sharepoint has been installed with NTLM,

I have installed SQL 2005 SP2 and used the same (default) instance for my Reporting Service dbs and my MOSS dbs.

I have installed the reporting service add-in tool for SharePoint.

I have configured Reporting Services to be in SharePoint integrated mode.

The Report Server Virtual Directory is configured as

Name: ReportServer

Website: Default Web Site

In Central Administration-Reporting Services

The Report Server Web Service URL is http://serverx/ReportServer

When I try and access the Set server defaults I get the following message:

An unexpected error occurred while connecting to the report server. Verify that the report server is available and configured for SharePoint integrated mode. --> Server was unable to process request. ---> Client found response content type of 'text/html; charset=utf-8', but expected 'text/xml'.

and an html page

with the message The file you are attempting to save or retrieve has been blocked from this Web site by the server administrators

When I remove all the blocked file types from Blocked file types I get the same message

An unexpected error occurred while connecting to the report server. Verify that the report server is available and configured for SharePoint integrated mode. --> Server was unable to process request. ---> Client found response content type of 'text/html; charset=utf-8', but expected 'text/xml'

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